How Property Management Can Boost Your Multi-Family Investment Portfolio
In an industry where a lot of property owners self-manage, there are several key areas which an experienced property management company can increase revenue
How Property Management Can Boost Your Multi-Family Investment Portfolio by Stacy Dejan, Co-Owner of Blue Rabbit Group
According to First Citizen Bank, there are multiple streams of revenue that a property management company can implement to be shared and even passed along to the landlord. Some sources may be application fees, pet fees, broker fees and more. To explain the basics and how this fits into multi- family property management, let’s first break it down further to answer the question: What do property management companies do?
The Strategic Role of Property Management in Multi-Family Investments
Understanding the Basics
A Property Management company is a liaison between ownership and tenants. They assist with doing the necessary work to make sure that not only the owner's asset is being taken care of, but that the tenants are enjoying the space.
A good Property Management company builds out processes and layers to ensure that operations as a whole deliver the owners goals.
Enhancing Property Performance
When hiring a property management company, you gain expertise from their training in the field. Leveraging their experience and resources helps make daily operations efficient and profitable.
Property Management companies and personnel have experience handling complex situations with tenants, vendors, and other key property management factors. Building tenant retention is vital to drive steady cash flow and good reputations to continuously bring prospective tenants.
Financial Benefits of Professional Property Management
It’s always wise to use Property Management companies as they help with several key factors that drive NOI for your property. Here are a few ways that property managers maximize your returns.
Maximizing Rental Income
Property Managers are in the business of understanding the competitive market. They utilize resources and data points to set competitive market rent prices by coming up with rent market analysis to further understand going rates for rentals.
Finding and highlighting key property features and finishes further help property managers to highlight these key indifferences of comparable properties to ensure that your property is getting its highest value.
Reducing Operating Costs
Preventative maintenance is key and a special trait for property management as it helps tenant issues from occurring. This affects your bottom line. Getting ahead of these issues to prevent them can not only lead to happier tenants but also prevent financial headaches down the line.
Vendors love working with property managers and companies as it further creates a partnership between the two parties. This can help drive service costs down providing owners with more savings.
Enhancing Property Value
What sets Blue Rabbit Group apart isn’t just our focus on adding a true level of hospitality to the traditional property management real estate industry but also our keen eye to identify potential capital improvement opportunities to drive higher revenue with project management. Such improvements include repainting, cabinet updates, or light and faucet fixture updates can make a world of difference!
As a tenant, nothing is worse than going on a property tour and noticing several areas that need attention. A good property management company has its finger on the pulse to ensure everything is in working order and the space is pristine.
Risk Management and Compliance
Navigating Legal Requirements
When managing real estate, it is imperative that you have the necessary agreements in place. At Blue Rabbit Group, we pride ourselves on not only our leases being transparent, but that our tenants go into a rental agreement knowing what is, and isn't, expected of them
It is also very important to make sure that you are following the correct local laws and regulations depending on where the property is located. Some things are national, whereas others, like landlord-tenant acts, may vary.
Mitigating Risk
What sets one property management company to be better than another?
Details.
It is important that when dealing with tenant and vendor relations, every communication and detail is recorded. This can help to prevent any future issues with miscommunication, especially disputes.
It's also important to properly screen and vet tenants. Property Management companies have the necessary tools, resources, and training to handle inbound inquiries properly.
Leveraging Technology in Property Management
Technology as a Tool for Efficiency
The days of analog are behind us. Tech is such a valuable tool in all of our lives today. This is especially the case when it comes to effectively managing real estate.
Having the right software and subscriptions in place to drive efficiencies is not only necessary but needed.
Taking it a step further, adding automation and API further streamlines operations to operate not only more cost-effectively, reducing headcount, but also faster.
Data-Driven Decision Making
What makes some of the most popular companies so successful?
Its data.
A valuable partner in the real estate management field values the data like its gold.
Can they tell you where most of their leads come from? Where is the best cost value on spending funds in marketing? Or what about the most successful platforms?
Different geographical locations may have more success on different platforms, and Blue Rabbit Group is here to deliver that data and lean in to make your asset more successful.
The Human Element: Building Strong Tenant Relationships
The Importance of Tenant Satisfaction
What is the highest cost in property management? Tenant turnover. That is why it is important to retain good tenants as much as you can.
Tenant retention can be maximized through strategic relationship management by leaning on the fact that the property manager is a “third party”. This protects the building and ownership from direct risk involved in building and maintaining tenant satisfaction.
This is another case of where Blue Rabbit Group shines.
Our mission is to Bring Hospitality Home. Nothing is better than going on a beach resort vacation where you are waited upon by staff who genuinely want to serve you.
Why should that end when you come back home from vacation?
Our goal is to provide the same level of service so that tenants want to stay with us for as long as they want.
